MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

COLMEC ELEKTRIK SDN. BHD.

 

 

Registered Office :

6-6-2, Queen's Avenue, Plaza 393, Jalan Shelley, 6th Floor, 55100 Kuala Lumpur, Wilayah Persekutua

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

29.06.1990

 

 

Com. Reg. No.:

200224-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Electrical and Electronic Components

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Usually Correct

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200224-U

COMPANY NAME

:

COLMEC ELEKTRIK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

29/06/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

6-6-2, QUEEN'S AVENUE, PLAZA 393, JALAN SHELLEY, 6TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

41, JALAN GANDEK, OFF JALAN SAN PENG, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92220844

FAX.NO.

:

03-92220897

CONTACT PERSON

:

TAN SU WAK ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46522

PRINCIPAL ACTIVITY

:

TRADING OF ELECTRICAL AND ELECTRONIC COMPONENTS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 170,000 CASH AND 830,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 4,522,152 [2011]

NET WORTH

:

MYR 1,643,892 [2011]

 

 

 

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND


The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) trading of electrical and electronic components.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).


 

The major shareholder(s) of the SC are shown as follows :



Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LIM SWEE PAIK

14, JALAN DURIAN LIMA, TAMAN CHERAS, BATU 5, JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

411221-71-5285

360,000.00

36.00

MS. TAN SU WAK @ TAN SWEE HUA +

14, JALAN DURIAN LIMA, TAMAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

430510-01-5502

280,000.00

28.00

MR. LIM PEI CHUON +

14 JALAN DURIAN LIMA, TAMAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

740604-14-5539

180,000.00

18.00

MS. LIM PEI CHYI

14, JALAN DURIAN 5, TAMAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

770222-14-5426

90,000.00

9.00

MS. LIM PEI HOUNG

N-B-15, JALAN PANDAN INDAH 25, PANDAN INDAH, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

720718-14-5440

90,000.00

9.00

 

 

 

---------------

------

 

 

 

1,000,000.00

100.00

 

 

 

============

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. LIM PEI CHUON

Address

:

14 JALAN DURIAN LIMA, TAMAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

740604-14-5539

Date of Birth

:

04/06/1974

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/05/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. TAN SU WAK @ TAN SWEE HUA

Address

:

14, JALAN DURIAN LIMA, TAMAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

430510-01-5502

Date of Birth

:

10/05/1943

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/06/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN SU WAK

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LISA WONG

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

YEO & CO

Auditor' Address

:

17 & 19 JALAN BRUNEI BARAT, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHOW WAI HARN

 

 

 

 

 

New IC No

:

690511-10-5906

 

Address

:

10, JALAN SERI TAMING 3A, TAMAN SERI TAMING, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

31/03/2011

Description Of Charge

:

FACILITIES AGREMENT AND A REGISTERED OPEN MONIES FIRST PARTY CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

GERAN 231337, LOT36736, MUKIM CHERAS, DEARAH ULU LANGAT, STATE OF SELANGOR

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

JALAN SUNGAI BESI BRANCH, 12 JALAN SUNGAI BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 06/04/2011

Registered and Numbered 1 In The Register of Charges

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers.

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

Goods Traded

:

ELECTRICAL AND ELECTRONIC COMPONENTS

 

 

 

 

Member(s) / Affiliate(s)

:

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

10

5

10

5

10

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of electrical and electronic components.

The SC sells electrical and electronic equipments and hardwares.

The SC however refused to disclose further information on its operation.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-92220844

Match

:

N/A

 

 

 

Address Provided by Client

:

41, JALAN GANDEK, OFF JALAN SAN PENG,55200,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

41, JALAN GANDEK, OFF JALAN SAN PENG, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.28%

]

 

Return on Net Assets

:

Unfavourable

[

7.12%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

39 Days

]

 

Debtor Ratio

:

Unfavourable

[

139 Days

]

 

Creditors Ratio

:

Unfavourable

[

70 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

2.10 Times

]

 

Current Ratio

:

Favourable

[

2.66 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

3.22 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46522 : Wholesale of electronic components and wiring accessories

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 


The E&E industry is an important contributor to the national economy, accounting for RM37 billion or 6% of the Gross National Income (GNI) and RM250 billion or 40% of total exports, and provides about 522,000 skilled and semi-skilled jobs. The Malaysian economy is likely to pick up momentum in the latter part of 2012 as improving external conditions boost demand for the electrical and electronic products. There are 1,900 active companies in the electrical and electronics (E&E) which offering products with unique market characteristics.


The economy expected to grow at an average moderate pace of 4.41% in 2012 with contribution of E&E sector. Base effects on electrical and electronics (E&E) sector shows a near-term slowdown but more favourable base effects, will increase electrical and electronics (E&E) exports and fiscal will lift at the second half 2012.


Consumer electronic product sales are predicted to rise from US$11.47billion in 2012 to US$14.44billion in 2016, an increase of 25.8%, boosted by demand from the tech-literate urban middle class and by a growing interest in electronic products from under-penetrated areas outside the Klang Valley.


Integrated circuits and LED chip manufacturing also expecting a good demand at the second half 2012.On the industrial electronic products sector the second quarter expected to improve over the first half 2012, which fell compared with the first half 2011.


According to Statistics Department, exports jumped 14.5% year-on-year in February 2012 to RM56.9billion largely due to demand for electrical and electronic products, which rose 7.8% to RM18.6billon. More than half of Malaysia exports to the US are electrical and electronic (E&E) goods which is semiconductor devices, ICs, transistors and valves. E&E contributes 34.1% of the manufactured goods, which contribute 67.7 %of the total Malaysian exports compared to "price sensitive" commodities, which contribute 28.6%. The electrical and electronic exports expected to pick up in the second half 2012.


Softening of world demand for solar panels impact Malaysia on it's downturn in small scale compared to China where it facing great impact. The decline in E&E products was also due to the weak global demand.


E&E has been instrumental in the development of the Northern Corridor Klang Valley, Johor and Sarawak, contributing significantly to the socio-economic development of the relevant communities.However, the E&E sector faces significant challenges in maintaining growth with intense competition from China, Taiwan, Singapore and other Asian countries. Over the last 10 years, E&E's share of Malaysian exports has gradually declined.


Malaysia's E&E sector remains focused on assembly, the lower value-added part of the industry while Taiwan, South Korea and Singapore have captured the higher value-added activities in research and development, design and manufacturing.


To propel the E&E industry to a higher level, under the Economic Transformation Programme (ETP) launched by the Government, a few sub-sectors namely integrated circuits, solar photovoltaics, light emitting diodes, and solid state lighting & integrated electronics have been identified for greater promotion based on their potential to contribute significantly towards Gross National Income (GNI) targets 2020.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1990, the SC is a Private Limited company, focusing on trading of electrical and electronic components. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. The SC is considered as a small entity with paid up capital stand at MYR 500,000.


Over the years, the SC should have build up its clientele base and received supports from its regular customers. Investigation revealed that the SC's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 1,643,892, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


Based on the above condition, we recommend credit be granted to the SC normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

COLMEC ELEKTRIK SDN. BHD.

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

30/06/2008

30/06/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

4,522,152

4,647,265

4,090,511

4,792,573

4,090,997

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

4,522,152

4,647,265

4,090,511

4,792,573

4,090,997

Costs of Goods Sold

<4,166,733>

<4,220,752>

-

-

-

 

----------------

----------------

----------------

----------------

----------------

Gross Profit

355,419

426,513

-

-

-

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

85,984

182,564

72,351

119,030

55,009

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

85,984

182,564

72,351

119,030

55,009

Taxation

<15,549>

<38,012>

<16,845>

<21,124>

<16,532>

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

70,435

144,552

55,506

97,906

38,477

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,115,582

1,325,780

1,295,024

1,221,538

1,206,821

 

----------------

----------------

----------------

----------------

----------------

As restated

1,115,582

1,325,780

1,295,024

1,221,538

1,206,821

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

1,186,017

1,470,332

1,350,530

1,319,444

1,245,298

CAPITALISATION FOR BONUS ISSUES

-

<330,000>

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

<37,125>

<24,750>

<24,750>

<24,420>

<23,760>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,148,892

1,115,582

1,325,780

1,295,024

1,221,538

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

3,471

2,560

-

2,427

1,701

Term loan / Borrowing

1,528

-

-

-

-

Others

33,763

32,133

-

8,456

5,446

 

----------------

----------------

----------------

----------------

----------------

 

38,762

34,693

-

10,883

7,147

 

BALANCE SHEET

 

 

COLMEC ELEKTRIK SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

312,807

115,089

57,838

77,479

94,920

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

4,800

4,800

-

4,800

4,800

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,800

4,800

4,800

4,800

4,800

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

317,607

119,889

62,638

82,279

99,720

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

480,904

301,431

-

415,532

398,682

Trade debtors

1,718,345

1,790,496

-

1,836,703

1,826,978

Other debtors, deposits & prepayments

4,800

4,800

-

4,800

13,619

Amount due from director

-

-

-

2,369

-

Cash & bank balances

97,495

315,366

-

341,719

57,378

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

2,301,544

2,412,093

2,285,990

2,601,123

2,296,657

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

2,619,151

2,531,982

2,348,628

2,683,402

2,396,377

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

793,822

812,997

-

1,158,348

933,187

Other creditors & accruals

10,936

18,159

-

15,741

16,244

Hire purchase & lease creditors

14,858

20,235

-

19,159

22,509

Short term borrowings/Term loans

14,583

-

-

-

-

Provision for taxation

32,120

28,484

-

11,390

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

866,319

879,875

851,612

1,204,638

971,940

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

1,435,225

1,532,218

1,434,378

1,396,485

1,324,717

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

1,752,832

1,652,107

1,497,016

1,478,764

1,424,437

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

495,000

495,000

165,000

165,000

165,000

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

495,000

495,000

165,000

165,000

165,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

1,148,892

1,115,582

1,325,780

1,295,024

1,221,538

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

1,148,892

1,115,582

1,325,780

1,295,024

1,221,538

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

1,643,892

1,610,582

1,490,780

1,460,024

1,386,538

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

82,272

-

-

-

-

Hire purchase creditors

26,668

41,525

-

18,740

37,899

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

108,940

41,525

6,236

18,740

37,899

 

----------------

----------------

----------------

----------------

----------------

 

1,752,832

1,652,107

1,497,016

1,478,764

1,424,437

 

============

============

============

============

============

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

COLMEC ELEKTRIK SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

97,495

315,366

-

341,719

57,378

Net Liquid Funds

97,495

315,366

-

341,719

57,378

Net Liquid Assets

954,321

1,230,787

1,434,378

980,953

926,035

Net Current Assets/(Liabilities)

1,435,225

1,532,218

1,434,378

1,396,485

1,324,717

Net Tangible Assets

1,752,832

1,652,107

1,497,016

1,478,764

1,424,437

Net Monetary Assets

845,381

1,189,262

1,428,142

962,213

888,136

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

138,381

61,760

-

37,899

60,408

Total Liabilities

975,259

921,400

857,848

1,223,378

1,009,839

Total Assets

2,619,151

2,531,982

2,348,628

2,683,402

2,396,377

Net Assets

1,752,832

1,652,107

1,497,016

1,478,764

1,424,437

Net Assets Backing

1,643,892

1,610,582

1,490,780

1,460,024

1,386,538

Shareholders' Funds

1,643,892

1,610,582

1,490,780

1,460,024

1,386,538

Total Share Capital

495,000

495,000

165,000

165,000

165,000

Total Reserves

1,148,892

1,115,582

1,325,780

1,295,024

1,221,538

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.11

0.36

-

0.28

0.06

Liquid Ratio

2.10

2.40

-

1.81

1.95

Current Ratio

2.66

2.74

2.68

2.16

2.36

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

39

24

-

32

36

Debtors Ratio

139

141

-

140

163

Creditors Ratio

70

70

-

88

83

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.04

-

0.03

0.04

Liabilities Ratio

0.59

0.57

0.58

0.84

0.73

Times Interest Earned Ratio

3.22

6.26

-

11.94

8.70

Assets Backing Ratio

3.54

3.34

9.07

8.96

8.63

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.90

3.93

1.77

2.48

1.34

Net Profit Margin

1.56

3.11

1.36

2.04

0.94

Return On Net Assets

7.12

13.15

4.83

8.79

4.36

Return On Capital Employed

7.06

12.99

4.83

8.67

4.30

Return On Shareholders' Funds/Equity

4.28

8.98

3.72

6.71

2.78

Dividend Pay Out Ratio (Times)

0.53

0.17

0.45

0.25

0.62

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

-

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.